The passage of the Senate financial reform bill is a huge victory for America’s consumers, but it does not mean that the battle for meaningful financial reform is done. The bill will now go to conference with representatives from the House and the Senate, who will negotiate the final version. During negotiations, Woodstock Institute encourages our lawmakers to strengthen protections for our communities and resist the influence of financial industry lobbyists trying to weaken the bill.

Importantly, our leaders in Washington must ensure that financial reform:

• Includes a strong and independent consumer financial protection agency. Currently, the Senate’s Consumer Financial Protection Bureau would be housed within the Federal Reserve, while the House’s Consumer Financial Protection Agency would be an independent entity. A strong and effective consumer financial protection agency must be independent in its leadership, funding, and decision-making and have primary examination, enforcement, and rulemaking authority.
• Creates federal consumer protections that are a floor, not a ceiling. States have often been first responders when predatory lending issues appear in their communities, as in the subprime mortgage lending crisis. States must be able to enforce strong consumer protection laws that are tailored to their needs.
• Does not include carve-outs for any financial service provider, including auto dealers. Consumers deserve the same protections for their credit cards, auto loans, and mortgages, no matter where the loans are originated. Creating carve-outs for certain financial service providers creates an uneven playing field and a safe haven for abusive practices to flourish.

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